Fusion-io Surges on Sales Forecast and Acquisition of NexGen

Fusion-io Inc. (FIO), a maker of data-storage computers, climbed the most in eight months after
forecasting sales that topped analysts’ estimates and announcing
the acquisition of NexGen Storage Inc.

Revenue in the fourth quarter, which ends in June, will be
about $110 million, the Salt Lake City-based company said
yesterday in a statement. That’s higher than the average analyst
estimate of $107.5 million, according to data compiled by
Bloomberg.

Fusion-io, whose biggest customers include Apple Inc. (AAPL) and
Facebook Inc., is aiming to sell to small and medium-sized
businesses with more affordable flash-memory-based services. The
company said it purchased NexGen for about $119 million in cash
and stock, and is already promoting NexGen’s hybrid storage
product on its website.

Fusion-io rose 20 percent to $20.03 at 9:46 a.m. in New
York, and earlier touched $20.20 for the biggest intraday gain
since August. The stock had dropped 27 percent this year through
yesterday, compared with an 11 percent gain for the Standard &
Poor’s 500 Index.

While revenue in the fiscal third quarter fell 7 percent to
$87.7 million, it topped the $80.4 million average analyst
estimate. Fusion-io said its net loss widened to $20 million, or
21 cents a share, from $4.68 million, or 5 cents, a year
earlier.

Fusion-io, which employs Apple co-founder Steve Wozniak as
chief scientist, sells corporate storage computers based on
flash memory, which is faster and more expensive than widely
used magnetic disk drives.

NexGen, based in Louisville, Colorado, introduced its
product in November 2011, a week after saying it raised $10
million from Next World Capital, Grotech Ventures and Access
Venture Partners.

“This would take years to build out as a stand-alone
company,” NexGen Chief Executive Officer John Spiers wrote
yesterday in a blog post. “Overnight, those concerns are
eliminated.”